Thursday, January 05, 2012

Daily Market Commentary: Bulls Keep The Pressure On

Buyers were again able to recover the intraday loss to finish higher. The Nasdaq enjoyed the best of the day's action, breaking above its 200-day MA on higher volume accumulation.


Strength in the Nasdaq was helped by the continual improvement in market breadth; this time the Nasdaq Summation Index completed a net bullish turn in technicals.


The semiconductor index climbed above its 50-day MA, lending additional support to the Nasdaq rally.


And the rally in the Nasdaq 100. It too gained on higher volume accumulation.


The Russell 2000 is preparing a fresh challenge on its 200-day MA. Today's intraday low came close to testing its 50-day MA, but the strong finish should see a test of the 200-day MA Friday.


Thursday's strong finish is good news for bulls looking for more of the same. We have seen two consecutive intraday pullbacks, but buyers have been able to take the indices back to the day's highs; one of these days there will be no pullback - just a straight gain...

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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.


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